A new research centre to investigate why economic prosperity in the UK is unevenly distributed was announced this week (14 January 2008).

The £2.4 million Centre for Spatial Economics, which draws on academic expertise from Swansea University’s School of Business and Economics, the London School of Economics and the Universities of Glasgow, Newcastle, Oxford and Swansea, is funded jointly by the Economic and Social Research Council (ESRC), the Department for Business, Enterprise and Regulatory Reform (BERR), the Department of Communities and Local Government (DCLG) and the Welsh Assembly Government.

Economic prosperity in the UK is unevenly distributed. The Centre will support high quality independent research to further understanding in why some regions, cities and communities prosper, whilst other don’t. Research will focus on why there are disparities in economic growth at all spatial levels including regional, city-region, local and neighbourhood.

Additionally, the Centre aims to influence and improve policy decision-making at the national and local levels, connecting UK policy makers with international expertise, research and good practice in diagnosing and tackling such differences.

The Director of the Centre, Dr Henry Overman, from the London School of Economics (LSE) commented: “Although based at LSE the new Centre will draw together leading researchers in the field from across the country including those from Universities of Glasgow, Newcastle, Oxford and Swansea. We aim to be a centre of excellence for independent, high quality, innovative, strategic research, enhancing the evidence base to inform why some areas of the UK outperform others, as well as a hub for engaging national and international stakeholders, for capacity development and knowledge exchange.”

Professors David Blackaby and Phil Murphy of Swansea University’s School of Business and Economics will be focusing on spatial disparities in Wales. Professor Blackaby said: “The Centre for Research in Spatial Economics provides the University with the opportunity to further its reputation in regional economics and to work with world leading academics at other institutions”.

“The objective of the Centre is to significantly improve the evidence base on the precise nature, extent, causes and consequences of the UK’s spatial disparities and help identify the appropriate policy response to them. The research for Wales is particularly important as devolution has resulted in the need for Wales to develop new policy initiatives rather than just implementing policies from Westminster. This has led to a greater need for research on the Welsh economy and policy advice for the Welsh Assembly Government”.

“Within Wales, the aim of the research is to expand the knowledge base by modelling and explaining regional differences in economic prosperity and to identify those groups and areas which may be falling behind. It is planned that the research will identify future areas of policy development aimed at increasing prosperity throughout Wales.”

Professor Ian Diamond, Chief Executive of the ESRC, said, "This exciting new research centre reinforces our commitment to supporting leading edge research in areas that impact on key areas for society and policy as well as strengthening the UK research base in Economics and other related disciplines. This is a solid investment that will help to ensure that the research base contributes fully to the economic development and quality of life for the people of the UK and beyond."
First Minister Rhodri Morgan said “The issues to be researched by the new Centre are highly relevant to Wales. I very much welcome this announcement and I am particularly pleased to see that Swansea University is fully involved as part of the successful team. It is very encouraging for the Welsh Higher Education sector to have participation in such a ground-breaking ESRC investment.”

“The new Centre will study issues that are highly relevant to the future of all areas Wales, improving economic growth and reducing economic inactivity are key factors that must be addressed to allow Wales’ economy to continue to grow from strength to strength.”

NOTES FOR EDITORS

1. The new Centre for Spatial Economics was announced by Business Minister Stephen Timms at a Fabian Society City, Business and Politics Network event. His speech will be available at: www.berr.gov.uk/pressroom/Speeches/index.html

2. The Sub-National Review on Economic Development and Regeneration set out the importance of local, sub-regional and regional tiers in driving economic performance. The Government will be consulting shortly on implementing the SNR through new single integrated regional strategies, and creating a focused duty on local authorities to carry out assessments of local economies. The Centre will help us to build on these developments.

3. The Economic and Social Research Council (ESRC) is the UK's largest funding agency for research and postgraduate training relating to social and economic issues. It supports independent, high quality research relevant to business, the public sector and voluntary organisations. The ESRC’s planned total expenditure in 2007/08 is £181 million. At any one time the ESRC supports over 4,000 researchers and postgraduate students in academic institutions and research policy institutes. More at http://www.esrcsocietytoday.ac.uk